China Fordoo boosts store network

China Fordoo Holdings opened 42 new stores in the first half of this year, helping it boost sales in a soft Mainland retail market.

Fordoo, a specialist menswear designer, manufacturer and retailer, now has 1494 stores across the Mainland, including two self-managed. Trousers account for 58 per cent of its revenue.

For the six months to June 30, group profit was about RMB136.9 million (US$21.4 million), up 6.4 per cent on the same period last year. Sales increased by 8.1 per cent to RMB828.4 million ($129.56 million).

“The increase was mainly due to the expansion of the group’s distribution network and the enhancement of its brand recognition,” the company said in its statement.

Fordoo said in the first half, China’s economy had entered into a “New Normal” phase.

“The economy has shifted from high growth to medium-to-high growth, and the economic structure has improved and been upgraded. Under the “New Normal” phase, the economy is increasingly driven by innovation rather than input and investment.”

Apparel retail growth slowed. Total retail sales of garments, hats, footwear and knitwear in China recorded a 8.3 per cent year on year increase which was 0.4 percentage points lower than that of the corresponding period in 2014.

“The overall retail market in China remained weak and consumer sentiment showed no sign of notable recovery. However, we are glad that China Fordoo Holdings was able to continue to grow at a stable and moderate pace during the period in terms of number of retail outlets, distributors and revenue.”